Good afternoon, readers. It’s a relatively quiet start to the week following an action-packed AI Summit in New Delhi last week.

Our main story today is the New Delhi Declaration, which marked the conclusion of the week-long summit. The declaration, signed by 89 countries, calls for the democratization of AI as India positions itself as the voice of the Global South on AI.

Adia is back in action as it plans to anchor the IPO of the renewables firm CleanMax. In other Adia-linked news, a private bank backed by the SWF is embroiled in a scandal that has sent the lender’s shares tumbling.

Also: JSW is planning a massive port build-out, anchoring its global expansion with a project in Oman.

All of that and more below.

Watch this space

TRADE — India has reportedly postponed a scheduled trade delegation visit to Washington after the US Supreme Court invalidated President Donald Trump’s reciprocal tariff policy, prompting both sides to reassess next steps in negotiations, Reuters reports.

The delegation was set to visit the US this week to finalize the interim trade pact after the two sides agreed to reduce punitive tariffs by up to 50%. Earlier this month, Washington announced that it would lower tariffs to 18% as India committed to purchasing USD 500 bn of American goods over five years and cutting Russian oil imports.

New tariff conundrum: Following the court’s decision, President Trump imposed a temporary 15% tariff — the maximum permitted under existing law — while his administration reviews next steps. This has put India in a bind as the effective tariff on Indian exports could possibly increase despite an interim arrangement.

MEANWHILE- India significantly reduced its purchases from Russia — down to 21% of total imports in January, the lowest since 2022. Middle Eastern barrels make up roughly 55% of the crude mix as refiners diversify sources, according to Reuters.

DIPLOMACY — Indian Prime Minister Narendra Modi will visit Israel on Wednesday, his second visit since 2017, according to a post on X. Modi said India values its “enduring friendship” with Israel, and the official agenda focuses on innovation, security, and a shared strategic vision. However, the visit has been challenged by Israel’s domestic opposition.

Entangled in political turbulence: Israeli opposition leader Yair Lapid threatened to boycott Modi’s address to the Knesset unless Prime Minister Benjamin Netanyahu formally invited Supreme Court President Yitzhak Amit, citing a long-standing parliamentary convention. Lapid warned that excluding the chief justice could leave the Knesset half-empty and embarrass India, while the opposition was accused of weaponizing a foreign leader’s visit for internal politics.

Why it matters: Modi’s visit is expected to deepen defense, security, and technology cooperation and advance discussions on the India-Middle East-Europe Economic Corridor, a project of strategic importance to both countries.

BANKING — Shares of Adia-backed private lender IDFC First Bank fell about 18% today after the bank disclosed a INR 5.9 bn (USD 65 mn) fraud at one of its branches, Hindu Businessline reports.

What happened: The bank disclosed that employees at its Chandigarh branch were involved in discrepancies related to Haryana government-linked accounts. It has since filed a police complaint and appointed KPMG to conduct a forensic investigation. The bank suspended four of its officials.

Why it matters: Abu Dhabi Investment Authority (Adia) is among the institutional investors in IDFC First Bank. In April 2025, Adia and Warburg Pincus committed INR 75 bn (USD 877 mn) to the lender through a preferential equity issue.

M&A — Japan’s Chubu Electric Power is eyeing a minority stake in Mumbai-based Continuum Green Energy, valuing the company at a minimum of USD 1 bn, Bloomberg reports. The proposed USD 150-200 mn investment would translate into an ownership stake of about 15%.

Why it matters: The discussions come as India’s renewable energy sector continues to attract international capital from Gulf SWFs and regional clean energy developers active in the market.

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Data point

59.3 — This was India’s private-sector activity, which accelerated in February, as recorded by the HSBC Flash India Purchasing Managers’ Index (PMI). Rising to 59.3 from 58.4 in January, this is the strongest reading in three months.

Big picture: Manufacturing led the pickup, with the PMI climbing to 57.5 from 55.4, while services were broadly steady at 58.4. Strong new orders, including faster growth in international sales, bolstered output and hiring. However, rising input costs pushed inflationary pressures to multi-month highs.

The big story abroad

Several stories dominate headlines this afternoon, including the killing of drug cartel kingpin Nemesio Oseguera after a raid by Mexican authorities. Oseguera was a top member of the organization known as Jalisco New Generation Cartel, which is one of the groups behind the smuggling of bns of USD worth of drugs into the US. The operation came after mounting pressure from Washington to prevent the flow of drugs across the border.

On the global stage, the European Commission said it expects Washington to stick to the joint trade agreement inked last year. The Commission demanded “full clarity” on Washington’s next steps and insisted the US honor the agreement, indicating that it will accept no increase in US tariffs. This comes after US President Donald Trump announced he is raising global tariffs to 15%.

Speaking of which, Trump’s newest tariff hike was found to benefit China and Brazil most while heralding higher costs for US allies, namely the UK, the EU, and Japan. US allies are thought to suffer most as their exports have a higher proportion of steel, aluminium, and autos, which are covered by some tariffs that remain in place.

MEANWHILE, IN MARKETS- Crude prices retreated in early trading today after Trump’s pledge to hike tariffs fueled anxieties over a potential slowdown in global economic growth and energy demand.

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